Small business is big business – at least that’s according to statistics from SBA.gov. They estimate that in 2023, 33,185,550 small businesses were starting or running in the USA. On this post, let's look at effective strategies for small business success.
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Whether you’re starting from scratch or dealing with the daily challenges of developing from the ground up, there will always be challenges (and lots of excitement) on the way to success.
From finding ways to streamline your processes, to making every single dollar count – there are strategies for small business success we can all consider to make our small businesses work, thrive and survive whether times are economically challenging or not.
Here are just a few of them.
What’s your growth plan…?
Think about your short and long-term growth plans. If you have a local small business development center within easy reach, visit! They can often give advice on starting and implementing a plan, or indeed look at current existing business plans to see how they can be tightened up.
Here are a few pointers on how to monitor small business growth. Firstly, make sure you look at data from sales and distribution streams. Analyze your profit margins, prices, and costs regularly to look at changes – whether these are positive or negative and see what improvements can be made.
Do the math and figure out how much you’ll need to see in the way of growth for the following year for your business to be a viable prospect. Study the products and services you’re offering. Look at which are hot property and the ones that don’t sell as well – take steps to strategize how you’ll deal with this.
Consider how you’ll compete against other businesses in the same industry. Whether that’s through better marketing, a little bit of underpricing here and there, or building a solid reputation for great quality and service.
Money, money, money – we’re talking about reinvesting!
Starting a business begins with passion. It’s tempting, once the cash starts rolling in to give in and indulge yourself. Who wouldn’t want to treat themselves to design goods, vacations, and luxury food if they had the money?
It’s an easy trap to fall into, but the one thing it does is take away focus from your business – not to mention funds. Many small business owners say the same thing – they wished they’d reinvested as much money back into their enterprise at the start. It’s difficult, but worth it in the long run.
Look at your overhead costs
In your initial years of business (and to be honest throughout) overhead costs are a factor that constantly needs to be looked at and revised. Some things are non-negotiable and should never be skimped on such as quality building cover, and liability insurance plans to ensure your staff and you are protected for every eventuality.
However, there are ways to save money and keep overhead costs down in other ways without making any compromises. The last few years have taught us that working-from-home options or hybrid teams are here to stay – as are outsourcing services and using virtual office staff.
The latter offers complete flexibility and a cost-effective approach – you can access skilled workers and pay them well, but there’s not the same commitment. Minimizing overheads means more funds can be diverted and reinvested back into your business too.
Think carefully about marketing considerations
Marketing and advertising are something that most companies and brands need, but in the early stages of a small business set up they can be expensive considerations – and they might not always yield a good enough return on your investment.
It’s here that direct marketing strategies become key. Targeted mailouts and digital marketing techniques – including savvy use of social media work much more effectively for small businesses than ever before.
Offer solid base salaries with incentives
Fair pay with a great basic salary is essential for all your employees (and you). There also needs to be some kind of incentive system in place. Healthy competition is what makes small businesses thrive and succeed.
Find ways to compensate your employees based on what they contribute and bring to the table when they achieve specific targets, or do something that enhances the company's standing.
Find employees that are customer-driven
At first, you might be running a skeleton staff – or you may be a sole trader. At some point, once you hit a certain target you’ll need to stop trying to run the whole shebang yourself.
However, the staff you hire reflect the effort you put into finding them. You must try and attract diligent and personable employees who are hard-working – and have the same passion for your products and services that you do. They’ll then be able to sell veal cutlets to a veggie!
These days staff have to have digital marketing skills, be great at customer service, and be familiar with tech. Even if you need help, you might not be able to afford full-time, permanent staff and that’s when contractors are a blessing.
They can help with core functions that can be outsourced, for instance, anything to do with marketing can often be given to freelancers or agencies who will do the work to a professional standard, leaving you free to run the business day to day.
Continually monitor your customer service
A successful business relies on its happy customers – they’ll not only make repeat purchases or continually use your services, but they’ll spread the word too. Keeping them happy and satisfied is a top priority. Regularly interact with them – seek their comments, reviews, and feedback. If there are any concerns or issues – address them swiftly.
Think about offering your current customers solid discounts in exchange for feedback or great reviews. From this, you can learn what they love about your products and perhaps what doesn’t work so well, either.
This information can be used to promote your offerings to new customers and perhaps encourage regulars to try something new too.
Bring in new customers – but don’t forget your current ones
Market share for any business relies on two different avenues to grow. The first is horizontal growth which ensures you increase your reach to new customers. Vertical growth on the other hand increases sales from your current customers. Don’t focus solely on one channel and forget the other – treat both with the same reverence and dedication.
Make sure you give excellent, focused customer service to your current clients to ensure their loyalty – but create lots of new deals to bring in brand new customers who you want to keep on board too.
New customer acquisition strategies are also of real value. To get new sales and newbies on board, the best thing to do is to develop a marketing strategy that generates sales leads whilst also increasing brand awareness.
How can this be done?
With clever use of all company digital marketing assets from the website through to social media channels and email marketing. Offer information about your products, give meaningful discounts, and lots of useful info for everyone to read and share. This will increase trust and knowledge of your brand.
Annual customer goals are important. What extra 1% can you give in every area that will impress new clients and retain your loyal followers? Regular discounts? Vouchers? Special one-time offers that are redeemable through social media channels. Focus groups with incentives – all these are possible with a little ingenuity.
Get together with other businesses and organizations
A way to help sales and also do some good is to develop relationships with charities and organizations that do good in the community. Sponsor fundraising events or join your local chamber of commerce.
It can also help to cross-promote other businesses that complement yours – but that aren’t direct competitors. A little healthy jostling is good!
Look at your technology and see what can be automated
Small businesses that use tech to their advantage get through tough times better than those that shy away from it. It’s a cost-effective way to bolster production, automate services, and free up time so that staff have more time for other important tasks.
Apps and software programs that carry out the following are worth investing in:
- inventory tracking
- cost estimates
- bookkeeping
- pricing
- purchasing
- employee scheduling
- payroll
Implement These Strategies for Small Business Success
Not all of these will benefit all small businesses – so take some time to work out what strategies for small business success suit your needs and invest. Leave the rest!
To work out what you might need – think about what the biggest demands on your time are. If it’s payroll or dealing with scheduling, use the software that helps with those and research the technical solutions that will address them.
Some businesses might not have a digital shop or social media presence at all. In these instances, it’s worth making the investment in a website and business accounts on social media platforms to build a presence.
Every small business has its highs and lows. Taking on board some or all of these ideas means you can make a significant impact on the success of your business day-to-day – and your short and long-term goals will become much more achievable.
